## **Question 13: C. Debbie’s Trading Account for the year ended 31 Dec 2016** ### **Given Data** - Opening Inventory: $340 - Purchases: $2,300 - Returns Outwards: $400 - Sales: $6,720 - Returns Inwards: $700 - Closing Inventory: $260 --- ### **(A) Vertical Format** **C. Debbie’s Trading Account for the year ended 31 Dec 2016** | Particulars | Amount ($) | Particulars | Amount ($) | |-----------------------------|------------|---------------------|------------| | To Opening Inventory | 340 | By Sales | 6,720 | | To Purchases | 2,300 | By Returns Inwards | 700 | | Less: Returns Outwards | (400) | By Closing Inventory| 260 | | Net Purchases | 1,900 | | | | To Cost of Goods Available | 2,240 | | | | To Closing Inventory | (260) | | | | Cost of Goods Sold | 1,980 | | | | **To Gross Profit c/d** | **5,700** | | | | **Total** | **7,680** | **Total** | **7,680** | **Working:** - Net Purchases = Purchases – Returns Outwards = $2,300 - $400 = $1,900 - Cost of Goods Sold = Opening Inventory + Net Purchases – Closing Inventory = $340 + $1,900 - $260 = $1,980 - Net Sales = Sales – Returns Inwards = $6,720 - $700 = $6,020 - Gross Profit = Net Sales - Cost of Goods Sold = $6,020 - $1,980 = $4,040 --- ### **(B) Horizontal (T-Account) Format** | Dr. Side | $ | Cr. Side | $ | |--------------------------------------------|---------|----------------------------------|---------| | Opening Inventory | 340 | Sales | 6,720 | | Purchases | 2,300 | Returns Inwards | 700 | | Less: Returns Outwards | (400) | Closing Inventory | 260 | | Net Purchases | 1,900 | | | | Cost of Goods Sold (340+190-260) | 1,980 | | | | **Gross Profit c/d** | 4,040 | | | | **Total** | 6,020 | **Total** | 6,020 | --- ## **Question 14: Trading Account for the period ended 30 Sep 2015** ### **Given Data** - Sales: $7,000 - Sales Returns: $500 - Purchases: $4,600 - Purchases Returns: $240 - Carriage Inwards: $130 - Opening Inventory: $590 - Closing Inventory: $300 --- ### **(A) Vertical Format** **Trading Account for the period ended 30 Sep 2015** | Particulars | Amount ($) | Particulars | Amount ($) | |-----------------------------|------------|---------------------|------------| | To Opening Inventory | 590 | By Sales | 7,000 | | To Purchases | 4,600 | By Sales Returns | 500 | | Less: Purchases Returns | (240) | By Closing Inventory| 300 | | Net Purchases | 4,360 | | | | To Carriage Inwards | 130 | | | | To Cost of Goods Available | 5,080 | | | | To Closing Inventory | (300) | | | | Cost of Goods Sold | 4,780 | | | | **To Gross Profit c/d** | 2,220 | | | | **Total** | 7,000 | **Total** | 7,000 | **Working:** - Net Purchases = Purchases – Purchases Returns = $4,600 - $240 = $4,360 - Cost of Goods Sold = Opening Inventory + Net Purchases + Carriage Inwards – Closing Inventory = $590 + $4,360 + $130 - $300 = $4,780 - Net Sales = Sales – Sales Returns = $7,000 - $500 = $6,500 - Gross Profit = Net Sales - Cost of Goods Sold = $6,500 - $4,780 = $1,720 --- ### **(B) Horizontal (T-Account) Format** | Dr. Side | $ | Cr. Side | $ | |--------------------------------------------|---------|----------------------------------|---------| | Opening Inventory | 590 | Sales | 7,000 | | Purchases | 4,600 | Sales Returns | 500 | | Less: Purchases Returns | (240) | Closing Inventory | 300 | | Net Purchases | 4,360 | | | | Carriage Inwards | 130 | | | | Cost of Goods Sold (590+436+130-300) | 4,780 | | | | **Gross Profit c/d** | 1,720 | | | | **Total** | 6,500 | **Total** | 6,500 | --- ## **Final Summary** - **Question 13 (Debbie):** - **Gross Profit:** $4,040 - **Net Sales:** $6,020 - **Cost of Goods Sold:** $1,980 - **Question 14:** - **Gross Profit:** $1,720 - **Net Sales:** $6,500 - **Cost of Goods Sold:** $4,780 Both trading accounts are presented in **vertical** and **horizontal** formats, showing all calculations for net purchases, cost of goods sold, and gross profit.

## **Summary of Question 13: C. Debbie’s Trading Account** C. Debbie’s Trading Account for the year ended 31 December 2016 shows a gross profit of $4,040, with net sales totaling $6,020. The cost of goods sold was calculated at $1,980 after accounting for opening and closing inventory. --- ## **Summary of Question 14: Trading Account for the period ended 30 Sep 2015** The Trading Account for the period ended 30 September 2015 reflects a gross profit of $1,720, with net sales amounting to $6,500. The cost of goods sold was determined to be $4,780, incorporating opening and closing inventory along with carriage inwards.